Fundamentals of Corporate Finance 8th Edition

This book is derived in part from its sister text Principles of Corporate Finance. The spirit of the two books is similar. Both apply modern finance to give students a working ability to make financial decisions. However, there are also substantial differences between the two books. First, we provide much more detailed discussion of the principles and mechanics of the time value of money. This material underlies almost all of this text, and we spend a lengthy chapter providing extensive practice with this key concept.

Second, we use numerical examples in this text to a greater degree than in Principles.

Each chapter presents several detailed numerical examples to help the reader

become familiar and comfortable with the material.

Third, we have streamlined the treatment of most topics. Whereas Principles has

34 chapters, Fundamentals has only 25. The relative brevity of Fundamentals necessitates

a broader-brush coverage of some topics, but we feel that this is an advantage

for a beginning audience.

Fourth, we assume little in the way of background knowledge. While most users

will have had an introductory accounting course, we review the concepts of accounting

that are important to the financial manager in Chapter 3.

Principles is known for its relaxed and informal writing style, and we continue this

tradition in Fundamentals. In addition, we use as little mathematical notation as possible.

Even when we present an equation, we usually write it in words rather than symbols.

This approach has two advantages. It is less intimidating, and it focuses attention

on the underlying concept rather than the formula.